Nearly 20% of the offered quantity managed to fetch bids.
Odisha’s state-owned miner- Odisha Mining Corporation (OMC) had scheduled its iron ore lump e-auction today (28th Apr’20). Out of the total quantity of 243,500 MT only 45,000 MT received bids. Bids were received at base price set by the miner.
The iron ore lumps (10-40 mm) offered from Gandhamardan mines flat bids at INR 2,350/MT for 22,000 MT ore. The material from Koira mines received bids for 23,000 MT at INR 2,650/MT. The entire quantity of 10-180 mm lumps and 50,000 MT from Daitari mines remained unsold. Since lock-down, limited buying was seen in Odisha iron ore market as mills had either suspended or curtailed operations. Also, the majority of them are holding inventories with them, resulting in limited fresh bookings.
The miner had reduced the base price of the ore by up to INR 500/MT against the last lump auction held on 24th Jan’20. The base price for material offered from Koira mines reduced by INR 500/MT, price for iron ore from Daitari mines reduced by INR 350/MT and that of 10-40 mm from Gandhamardhan mines by INR 300/MT.
Bid price comparison of OMC iron ore E-auctions
| Mines | Size | Fe (%) | Base Price as on 24th Jan’20 | Bid Price as on 24th Jan’20 | Base Price as on 28th Apr’20 | Bid Price as on 28th Apr’20 | Quantity Offered | Quantity Booked |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | (MT) | ||
| Gandhamardan | 10-40 | 62% | 2,650 | 2,653-2,681 | 2,350 | 2,350 | 102,000 | 22,000 |
| 10-180 | 65% | 2,100 | 2,380 | 2,100 | – | 1,500 | – | |
| Kurmitar (Koira) | 10-40 | 62% | 3,150 | 3,439 | 2,650 | 2,650 | 90,000 | 23,000 |
| Daitari | 10-40 | 62% | 3,150 | 3,150 | 2,800 | – | 50,000 | |
| Total | 243,500 | 45,000 | ||||||
Bid prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
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